James Mangold is on board to direct the pic, with the X-Men Origins: Wolverine production team of Lauren Shuler Donner, Jackman and John Palermo back on board.

The $80 million production will create more than 720 jobs for NSW-based cast and crew, along with opportunities for as many as 1,200 extras, according to Stoner. The bulk of the film's postproduction will be done in the U.S., assisted by Australia-based companies.

"I couldn't be more excited to return to Australia to film the next chapter in the Wolverine saga, thanks to the significant support from the federal and NSW governments,” Jackman said. “It will be great to work with the highly talented crew and to provide employment opportunities to so many people across all levels of the industry. Not to mention, [wife] Deb and I will get to spend some time with the family back in Australia."

Added Stoner, "It is a testament to our screen industry that Hugh Jackman and his team have chosen to come back to Australia after such a positive experience making the X-Men Origins."

Securing the Wolverine shoot is a boost for the production sector here after the cancellation of Alex Proyas’ planned epic Paradise Lost and the decision by 20th Television not to move ahead with a second season of Terra Nova, which was made in Queensland.

Stuart Beattie’s I, Frankenstein is in production in Victoria, Animal Logic is ramping up production on the digital features Lego and Walking With Dinosaurs, and Baz Luhrmann's The Great Gatsby is in postproduction.

Proyas is set to direct The Unpleasant Profession of Jonathan Hoag here later this year.